Decree No. 2006-285 amending certain provisions of Decree No. 98/896 of October 21, 1998 and Decree No. 97-656 of May 7, 1997, setting the conditions for subscribing to Treasury Bills by way of Auction

DECRET N° 2006-285 amending certain provisions of Decree No. 98/896 of October 21, 1998 and Decree No. 97-656 of May 7, 1997, setting the conditions for subscribing to Treasury Bills by way of Auction.

THE PRIME MINISTER, HEAD OF GOVERNMENT Having regard to the Constitution, Having regard to Law No. 95-030 of February 22, 1996 on the activity and supervision of credit institutions, Having regard to Law No. 2003-04 of July 7, 2003 amending the provisions of Article 7 of Law No. 94-004 of June 10, 1994 establishing the statutes of the Central Bank of Madagascar; Having regard to Organic Law No. 2004-007 of July 26, 2004 on Finance Laws; Having regard to Decree No. 98-896 of October 21, 1998 amending and supplementing certain provisions of Decree No. 97-656 of May 7, 1997 setting the conditions for subscribing to Treasury Bills by way of auction; Having regard to Decree No. 2003-007 of January 12, 2003 appointing the Prime Minister, Head of Government; Having regard to Decree No. 2003-08 of January 16, 2003 appointing members of the Government, as amended by Decrees No. 2004-001 of January 5, 2004; No. 2004-680 of July 5, 2004; No. 2004-1076 of December 7, 2004; No. 2005-144 of March 17, 2005; No. 2005-700 of October 19, 2005 and No. 2005-827 of November 28, 2005 appointing members of the Government, Having regard to Decree No. 2005-003 of January 4, 2005 establishing the general regulations on accounting for the budget execution of public bodies; On the proposal of the Minister of Economy, Finance and Budget, In Council of Government,

Decrees:

Article 1: The provisions of Article 5 of Decree No. 98-896 of October 21, 1998 amending and supplementing certain provisions of Decree No. 97-656 of May 7, 1997 setting the conditions for subscribing to Treasury Bills by way of auction are amended and supplemented as follows:

"Article 5 (new).- The bonds are accompanied by a prepaid interest represented by the difference between the offered purchase price and the corresponding nominal value. The selection of bids proceeds in two phases:

• the first, in the form of an auction, covers competitive bids which are served in ascending order of the proposed rates. However, the centralizing body reserves the right to reject any bid accompanied by a rate higher than a limit rate it determines. During this first phase, the Treasury may accept all bids whose rates are favorable to it by prioritizing subscribers who have submitted the lowest rate. The allocation of the marginal tranche will be made pro rata to the bids.
• The second covers non-competitive bids which are allocated, according to the Treasury's needs, at the weighted average rate of the first phase."

Article 2: The Prime Minister, the Minister of Economy, Finance and Budget, and the Central Bank of Madagascar are each responsible, within their respective areas, for the execution of this decree, which will be registered in the Official Journal of the Republic.

Done in Antananarivo, on April 25, 2006.

FOR A TRUE COPY ANTANANARIVO, on May 10, 2006 THE DEPUTY SECRETARY GENERAL OF THE GOVERNMENT ZAFINANDRO Armand

By the PRIME MINISTER, HEAD OF GOVERNMENT Jacques SYLLA

THE MINISTER OF ECONOMY, FINANCE AND BUDGET (Acting) RANDRIAMAMPIONONA Rolland